Exploring the success factors of eCRM strategies in practice

Abstract

Electronic Customer Relationship Management (eCRM) is one of the primary strategic initiatives in industry today with co-existing criticism and over-enthusiasm. There is a rapidly increasing number of reports on eCRM implementation failure and success; these reports, however, are all in piecemeal form. This research aims to systematically explore the current status of eCRM implementation status in practice and the critical success factors that affects the eCRM survivability, eg continued use of an eCRM system reaching intended profitability or growth. 180 companies in 12 industries were surveyed and 36 in-depth interviews were conducted to gain insights toward companies’ eCRM implementation. Findings from this research indicate that companies implement eCRM for different reasons, and that eCRM implementation brings both tangible and intangible benefits to the companies. Six major success factors of eCRM were identified and discussed. These results shed meaningful light on how the survivability of an eCRM strategy can be assessed and then improved, if necessary. The research results are formalised in a conceptual eCRM survival model that helps guide companies’ eCRM strategies.